Antigua Government Sued For US$1Million
February 18, 2011 Leave a comment
National Security Minister Dr Errol Cort is facing a US$1 million lawsuit filed by investors in the Stanford International Bank (SIB) yesterday – the last day they were allowed by law to submit such a claim.
Dr Cort is named in the lawsuit in his former role as finance minister. It said that, in that position which he held until 2009, he had direct oversight of the country’s offshore regulatory body, the Financial Services Regulatory Commission (FSRC).
And according to the investors, the FSRC’s regulation of Stanford’s companies was “a sham”.
The lawsuit against Dr Cort was one of several filed by the Official Stanford Investors Committee and court-appointed receiver Ralph Janvey in the US courts. It came on the two-year anniversary of the civil charges laid against Allen Stanford by the Securities and Exchange Commission (SEC).
Dr Cort told The Daily OBSERVER newspaper that he had not been informed of the suit.
“I would be most surprised but I have not been notified whatsoever,” he told the newspaper.
The investors committee and Janvey have sought a total US$25 million in the lawsuits filed yesterday. But there are US$500 million more in claims previously filed by the receiver.
So far Janvey, who has been trying to round up Stanford assets for the past two years, has only been able to recover US$188 million in cash, a far cry from the US$7 billion which the SEC said Stanford got from investors through the sale of fraudulent certificates of deposit (CDs) by his SIB.